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Texas Republicans Roil Muni Market Again With Energy Law

  • Issuers drop Wells Fargo, Morgan Stanley from bond deals
  • Underwriters are in limbo as comptroller implements energy law
Updated on

Political contagion in Texas’ $50-billion-a-year debt market is moving from guns to oil.

Big Wall Street banks were already shut out of Texas’ municipal bond market, where the state and its cities raise money, for policies deemed unfriendly to the gun industry. Now an even larger group could see their public finance businesses hurt by legislation limiting contracts with firms that “boycott” the energy industry.